‘Air Deccan’s business strategy is to connect the unconnected’

Air Deccan, the company behind the low-cost airline concept that has swept the country in the last couple of years, has turned the entire industry upside down, changing its dynamics, pricing and customer profile. The concept evolved over the last 10 years, says Capt GR Gopinath, managing director, Air Deccan. A firm believer that affordable air travel holds the key to development of interiors of India, he says aviation has to be central to government planning to deliver uniform growth. His vision for Deccan Airways is ‘1 billion seats.’ Shortly, Air Deccan expects to add 20 more flights, serve 1.5 million passengers and wing its way to profitability. In an interview with Reema Jose and Chitra Phadnis of FE, Capt Gopinath touched upon these issues and others. Excerpts:
You have been associated with a variety of industries, from organic farming to sericulture to micro irrigation. What sparked off the idea of a low-cost airline?Aviation business was not new to me. I was running a helicopter charter company, Deccan Aviation, earlier. Two events led to the low-cost airline idea. I was playing squash with a pilot friend of mine. He was back from the army and had no job. It hit me that we had hundreds of such trained pilots in India who end up doing administrative jobs once they retire.
At that time, there was not a single charter helicopter company for the public. Corporates like Vijay Mallya or Bajaj and political parties were using helicopters, but not the public.
How far was the general environment in the country conducive to this concept?In an emerging economy, helicopters are a great infrastructure. It was a sense of timing. China was reforming, USSR had changed; I knew that India couldn’t remain in isolation for long. Reforms have a life of their own. I knew that regardless of which political party was in power, India was on the verge of a good economic growth. The signs of the software boom were there. Our charter company grew from one helicopter to 12 in seven years. Two years ago, we began heli-tourism and started getting calls to take people to places like Mandya and Hampi.
Where did the airline fit in?Standing at the Phoenix airport one day, I read a board which said that the airport handled 1,500 flights a day, which is 30 million-odd passengers a year. All of India handles only 500 flights.

POSTED BY:-
SHWETA RANI
PGDM-3rd sem